Which of the following represents an agreed amount that the insured pays before the insurer covers a claim?

The choice of deductible accurately describes the agreed amount that the insured must pay before the insurer becomes responsible for the remaining costs of a claim. In insurance terms, a deductible is a specified dollar amount that the policyholder agrees to pay out of pocket before the insurance company will cover the claim amount. This mechanism is integral in insurance policies as it helps mitigate the number of small claims, thereby keeping premiums more manageable for all policyholders.

In contrast, a premium refers to the amount the insured pays to maintain their policy on an ongoing basis. A co-payment typically refers to a fixed amount a policyholder pays for specific services or prescriptions, often used in health insurance contexts. Exclusions detail specific situations or conditions that are not covered by the policy. Understanding these distinctions helps in comprehending the financial responsibilities that come with insurance coverage and the structure of claims handling.